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Mad Money

News/Business. (2012)

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NBC

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Amgen 19, Cramer 12, Washington 10, Us 8, Jim 7, Penney 7, Geico 4, New Jersey 4, Ron Johnson 3, Johnson 3, Phillips 3, Iams 2, Texas 2, Mr. Burke 2, Avon 2, Litz 2, Novo Nordisk 2, Isis 2, Starbucks 2, New Lysol Power & Free 2,
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  NBC    Mad Money    News/Business.  (2012)  

    November 16, 2012
    3:00 - 4:00am EST  

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thanksgiving. how to spy on your babysitter. >> there is a little opening tonight called "scandalous". >> see you there tonight. god bless. >> i'm jim cramer, welcome to my world. >> you need to get in the game! firms are going to go out of business and he's nuts, they are nuts, they know nothing! i always like to say there is a bull market somewhere. "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends, i just want the days of losing to end. my job is not just to entertain, but to educate. call me at 1-800-743-cnbc. you know what is infuriating? it was all about to work. our economy was at last about to take off after a slow recovery from the great recession. you wouldn't know that from the average today.
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dow once again sinking 29 points. yet, the economy, the economy was about to bust out and washington snuffed it. we had it in hand. we had a turn in housing with home builders, and we had to turn to booming orders from boeing. and banks were getting their balance sheets growing again, and oil and gas industry started booming and opportunities for new petrochemicals hiring tens of thousands of people. autos were the strongest in years. people, it was all coming together. and now washington's crushing it. best of all, people are starting to get hired again. all those industries just
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mentioned were growing, all of them looked like a real good year to expand. business people are in retreat, and their leaders, many of whom speak to me, are done hiring. and they want to fire, cut back, show they saw the chaos from capital coming and did the right thing for shareholders, when the right thing not that long ago was to hire, not fire. washington with its sickening inability to compromise wrecked it, wrecked it all, and took what was developing into a beautiful bull market, led by real profits, real hiring and turned it on its head, maybe turned it into a bear market. makes me nauseous just thinking about it. if they gave us something, really anything, even a bad outcome at this point, we would be better off. instead they throw spitballs at each other. the damage to the stock market has been swift, devastating and beleaguering. after these recent declines, our dow jones industrial average is
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up less than half of what the average stock market in europe is up to. and we're not doing as well as france, for heavens sake. france. only one-sixth of the german market's gains. in this state of decline, every stock is guilty until proven innocent. so the selling is relentless. at this point, we're coming to accept that stocks will go down regularly and the thing we have to ask is not when the selling is done, whether it's overdone and we can bounce on good news. we need to know are we sold out yet. that's the term. are we sold out? oversold, another term that means the same thing. the swiftness with which all of this is happening, hedge funds that remember how their loss -- they lost their year last year like that. boy, i believe make it so that the selling actually runs its course, if not overruns its course before we run over the cliff. how do we know when the wholesale dump has gotten irrational?
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how do we know it's best to wait for a bounce, wait until it rallies and maybe it's even tomorrow worth buying something because the market is so oversold. how do we know this? how do we know it, monitor the damage washington is creating to see if we can figure out to cut our losses or actually begin to think about making a profit? remember those days? let me give you -- i got three ways to measure this, people. three ways that are going to put it in a workable context for you at home. first, the washington on tv indicator. this is simple, easily monitored and the most important of all indicators, when the president or any of the leadership from republicans or any important minions utters anything about the fiscal cliff on tv. right now we know after yesterday's dismal strident presidential conference. we're not on track any time soon. no move to rise above. the pols don't feel threatened by the chaos they spawned.
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in fact, they are emboldened. no one shamed into changing a hardline position to keep us from compromising. they don't know that it is leadership, not weakness, if you budge from the hardline. that means every time someone in a position of power comes on our air, you can expect the market to go down. don't trust any initial bursts of optimism before or after a sound bite unless it's from both parties at once standing at a podium saying we have a deal. use yesterday as a template. when you see or hear a presidential event, brace yourself, okay? want you to be ready for the market to crater. same as if the speaker of the house grabs the mike. sell stocks short. buy put options, the equivalent of a hard hat and fallout shelter. that's where we are now. with the washington on tv indicator, we'll know when it's safe, when the market stops getting pulverized. that's my indicator. any time washington has intruded
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on the stock market. we stopped going down on political sniping and compromise, we're at the bottom. cramer's bottom alert. second, purest of pure fiscal cliff plays out there in a stock called lockheed martin. a good defense company despite the recent management upheaval. outsize yield. if our leaders don't rise above politics, we'll see two of the industries crushed. this stock symbol should be front and center, upper left on your screen, i put it up five times, not just once for emphasis. might as well be the thermometer for the market. the third indicator, third indicator, if the selling is running its course, the cisco/home depot/pet smart indicator. they correctly captured discretionary retail housing and technology spending. if they cannot hold their gait, then no stocks can right now. other than higher yielding names like coca-cola, verizon, at&t.
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those three indicators that i just gave you tells that the bad news is baked in, or if it isn't, they will allow us to speculate that the stock market itself with the daily nose dives has washington worried. they will get us through this, and we'll get through this, even as we have to admit that odds for going over the cliff have increased greatly because the sniping has begun. we as a country were so close, almost there. the jobs spigot about to be turned on. numerous domestic industries were turning to the positive, many for the first time in years. our stock market was taking on all the attributes of the bulls of yore. all of that is out the window, because in six weeks, the financial world as we know it will be torn asunder, and this
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has nothing to with how well companies do or how cheap stocks are historically, it's all about the pride of our elected leaders. what can i say? we deserve better. jack in ohio. jack. >> caller: hey, jimmy. with all the settlements going on, right, it's a long-term buy and hold. and the yield is going up. what do you think about bp? >> no. i'm going to send you a stock that has fallen precipitously and they'll change the tax law, i don't think they will. i'll send to you lnco. they have been able to take advantage of the forced sales of bp and this stock now yields 8%. lnco is the way to go. gary in indiana. >> caller: booyah too ya, "mad money" buddy. >> boomer sooner to you. >> caller: last time i was on, i
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called about what i thought might be the next starbucks of the tea industry. you didn't like it, and i grew not to like it either. now teavana is starbucks. i'm wondering since i sold it short, is it too late to get back in? >> is too late. i thought this was brilliant. my reservation in teavana, i said let's go get some tea. teavana doesn't serve tea. howard schultz is putting tea in. i think you should buy starbucks, charitable trust is doing it right now. making history every day. we may encounter the first congressionally mandated bear market if washington doesn't soon veto it. washington has to rise above. the congressionally mandated bear market, we're all feeling the pain and we all deserve better.
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"mad money" will be right back. coming up, sale or sell? there's no shortage of opinions on jcpenney. investors bet big on the turnaround story, sold by former apple exec ron johnson. thus far, the stock hasn't fit the mold. will the holidays provide a boost, or is it time to try on some new digs in the sell block? later, you're invited. the party is not over. cramer has found more stocks that have reason to celebrate after delivering upside earnings surprises. this biotech name got a dull response to its report in october. but after wall street skipped out on its invite, there may be room for you to profit. plus, paper from plastic? by swipe, type or tap, consumers are putting more payments than ever on credit. looking to cash in on all those cards? cramer is sitting down with the
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ceo of bank card processor heartland payment systems to see if they can help you rack up rewards. all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. melons!!! oh yeah!! well that was uncalled for. folks who save hundreds of dollars switching to geico sure are happy. how happy, ronny? happier than gallagher at a farmers' market. get happy. get geico.
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never, ever buy a stock just because it's come down so much you feel like it has nowhere left to go but up. stock picking is a lot like going shopping. some people will buy terrible merchandise because it's marked down enormously and looks cheap. looks can be deceiving. take the calamity that is jcpenney. this is a classic case of how much damage a bad ceo can do to a once viable brand. about a year ago, jcpenney hired ron johnson, the guy who is supposed to have created the looking field, the apple store, to be it's new chief executive. he took over to great fanfare and laid out a whole bunch of new strategies, supposed to turn around penney's stagnant business. stocks soared at the time. instead of turning jcpenney around, johnson dumped a bunch of stock and turned it into a wreck. the company reported its third
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hideous quarter in a row and it's trading 16 and change. i told you to start selling jc penny in may when it was trading ten points higher than it is now. why not come to the story now, besides the fact that it dropped ten from there? why pick on ron johnson, rather than say walmart which reported disappointing numbers this morning? i'm not doing this to be a bully. i'm reiterating that jcpenney belongs in the sell block, because when stocks come down this far, you start to get tempted. down 61% from highs. how much lower can it go? after all, it's jcpenney for heaven's sake. it's a household name. bill akman runs pershing square capital and just defended penney and johnson's leadership. he's a smart guy. maybe not so crazy to buy penney's down here, right? wrong.
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penney is a value trap. it's a stock that appears cheap, but it will only get cheaper. we've seen no sign that trends are improving. they are still deteriorating rather dramatically. and to make matters worse, jcpenney could send the stock higher. and the company has a badly weakened balance sheet. something we can tell by monitoring the company's bonds, which have been getting whacked down almost daily. all of the ingredients of a terrible investment. i wouldn't be attracted to jc penney, even in single digits. not unless fundamentals improve dramatically it would almost be funny if it wasn't causing so many people to lose gigantic sums of money. nobody expected them to transform overnight. but we're three-quarters into the turnaround and these guys don't have a clue. the original idea was to get rid of coupons, and then get rid of flashy sales, try to attract customers with everyday low
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price, the same strategy that walmart loses -- uses, not loses. it didn't work, customers fled in droves. in october, they launched $10 gift coupons and then they have now pricing, it was $100, it is now $50. jcpenney is trying to correct its mistakes. it's too bad that they don't have clarity about strategy or vision. in january, johnson laid out a vision for jcpenney that was dead wrong. it seems like they have no idea what direction they should be going. sale, no sale, sister, mother, what the heck is going on? they reported last week, and the results were unbelievably hard. same-store sales decreased, marking the fifth consecutive quarterly decline. total sales down 26.2%. the gross margin, what they make on every dollar of sales declined by 480 basis points. i have never, ever in my career,
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seen a retailer pull out of a down 26% comp tailspin. never, ever. penney's attempted to remodel to a new format. some brands were all over the place. i don't think that moves the needle, other than down. they say it's working, they say it over and over, and each remodel costs a fortune for a company that doesn't have a fortune to pull it off. as was described very eloquently in "the new york times." they might be able to remodel a bunch more. if the results were bad, the commentary with the results was worse. let me read you a snippet from the conference call. another quarter of unbelievable learning for us at jcpenney. we are now nine months into the transformation, and eight weeks to go until we're done, and each quarter we learn a lot. we adapt, we try to move forward. unbelievable. learning. what a euphemism.
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i haven't seen this much learning since chairman mao's reeducation program. maybe they have so much to learn about the department store business, the board should fire them and bring in somebody who doesn't need to take a remedial course in retailing. standard & poor's downgraded from b plus to b minus. if penney hadn't made some sales this year, they wouldn't have a penny on its balance sheet. the bulls point to the value of jcpenney real estate to own the stock and they own property underneath 426 stores, however, we when look at the retail chains that may covet that land, costco, best buy, walmart, we do not see any one of them wanting to buy these large spaces. macy's, nordstroms, saks aren't in expansion mode or have stores
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already in similar locations. they may be a fraction of what the bulls say. you can't fill these places with boutique specialty stores. best buy won't take them off your hands. i come from a retail background. my father sold boxes and bags for retailers for 60 years. my father worked at gimbals, and my mother worked for litz. i learned from my folks that there is no right to exist in retail. and just because you're a storied name, that doesn't mean anything. because believe me, litz and gimbals were storied, as was woolworth, the fabled letter z in the dow jones industrial average, gone. to give you anecdotal color, i visited the manhattan mall jcpenney today. i got a nifty pair of khakis.
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they are making so much out of brand names like izod and liz claiborne. they are so what brands, so what you have them? many of them are available at any outlet mall. nobody cares. have you been to jcpenney? i would never take my kids there, ever. they would laugh me out of the house faster than john travolta laughed carrie off the stage. i had no idea what was on sale, what wasn't on sale, what was on regular price. had no idea why i was in the store. but i did buy this nifty hat. because after all, i am a shopaholic. i took a bunch of dress shirts to the register, the prices seemed really reasonable. they could be a steal, makeup on my shirts, throw them away all the time. i saw they were half polyester and only a small limited selection of actual cotton dress shirts in the whole store. sorry, no reason for being. here is the bottom line. jcpenney has been crushed.
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that doesn't make it a bargain other than this $22 chapeau was a real bargain. some things go down because they deserve to, which is why at $16 and change, penney remains a sell, sell, sell. stay with cramer. coming up, you're invited. the party is not over. cramer has found more stocks that have reason to celebrate. after delivering upside earnings surprises. this biotech name got a dull response to its report in october. but after wall street skipped out on its invite, there may be room for you to profit. and later, paper from plastic, by swipe, type or tap. consumers putting more payments than ever on credit. looking to cash in on all those cards? cramer is sitting down with the ceo of bank card processor heartland payment systems to see if they can help you rack up rewards. all coming up on "mad money."
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just because we need to get more cautious in the face of the looming fiscal cliff, that doesn't mean there aren't stocks that are worth picking on the way down. not buying all at once, but picking. we are never so arrogant to think we can call bottom. we want to leave room to buy more as the fiscal cliff
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discussion drags on. some companies with excellent results and zero economic sensitivity are being ignored or sold. people are so sick of the declines. come on, six out of the seven last days makes sense. it does give you a lot of opportunities, as long as you are careful. you keep your head up, you are not so down and depressed you pass up on great opportunities. yesterday, i started throwing some surprise parties, trying to liven up, you know, kind of leaven things here. parties for companies that reported upside surprises during the past earnings season. not just any surprises. only the best of the best. the folks at bespoke investment group put together a list of those that beat wall street earnings estimates and gave better than expected guidance. that's the classic earnings season triple play. i won't give you a list. i looked through the list, i picked the best ones. i am searching for the companies
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that i like that can thrive in this environment with the fiscal cliff and with a recession a possibility. look, it's a possibility if they don't solve this thing. today i was throwing a surprise party for amgen. you know what, fiscal cliff, no fiscal cliff, we're still having an amgen party here. inappropriate balloon moment there. they make all kinds of drugs for many serious illnesses. it has seven products in development that are starting phase three clinical trials in the early part of next year. phase three means it's getting near fruition. amgen could double earnings per share over the next eight years.
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that is much better than a sharp stick in the retina. amgen reported on october 23rd after the close and the company delivered spectacular results and was a true triple play. earnings came in $1.67, and revenues 5.9% year over year. when the street was looking for $4.25 billion. management's four-year guidance, substantially higher than the analysts expecting. those were fabulous numbers. no surprise that the stock shot up from $87.32, to nearly $90 in after hours trading. however, the next day amgen started to come back down, and since then, courtesy of the fiscal cliff, the stock is only going further downhill. it's down 6.3% from its highs after doing everything we wanted the company to do and more. some of this weakness is because people are worried from competition. and i think it's only a small part of it. these are things we can see coming.
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i think it's clobbered, just like during the debt ceiling debacle last year. at this point in the debt ceiling mess, you have to start carefully picking, not selling, at the non-economically sensitive stocks, that would do just fine. this is around when they started to stabilize last time. and amgen definitely fits the bill. it won't stop going down the rest of the market and if you own amgen, you will get hurt less than the typical stock this is a no pain/no gain moment. amgen fits that treatise. they did report a terrific quarter. amgen has an incredibly robust pipeline of new products, and the best of these drugs, known as amg 145. a treatment for rare genetic disorder that causes people to have massive amounts of ldl cholesterol and can shorten a patient's life span by decades.
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we talked about drugs that can treat this disease before. big deal. this drug could be a $2.5 billion opportunity for them. overall, amgen's six pipeline drugs could be worth $7 billion in peak sales. many drugs are exceeding expectations. one for autoimmune disorders, x giva for osteoporosis. and nulasta for chemotherapy related infections. why wasn't i out here recommending it ahead of the quarter? it's below, so let's do it, not only is the business going well, but it's incredibly shareholder friendly. a gigantic buyback. in less than two years, amgen has repurchased 20% of shares outstanding, an average price of less than $60 per share. savvy investors. up 39% from those levels. they pay a dividend. small one. yield just 1.7%, put the plan to
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grow the payout aggressively. they could boost their dividend to get to a 3% yield by 2014 for a fast growing drug company, and even with the high probability, we still like companies that raise their payouts. if the tax bill worries you, you can always own amgen in a tax favored account like an ira. amgen is cheap, 10.5% long-term growth rate. i'm not saying it's done going down, but as we wait for the fiscal cliff to be resolved, amgen will be among the first stocks to stabilize and rebound with a vengeance. i have never seen amgen this cheap in my lifetime. what a great 401(k)/ira stock. amgen is a stellar company that's being overlooked. nothing to do with the fiscal cliff whatsoever.
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it has more to do with clifford the big red dog. this has a robust pipeline and shareholder friendly attitude. pick amgen carefully on the way down, starting in tomorrow's session and i'm happy to throw a party for its upside surprise. dave in texas. dave. >> caller: jim, given the worldwide epidemic of obesity and along with it, diabetes, i'm shocked i never hear anyone on your show discuss the stock novo nordisk. i am wondering if you think there's a good opportunity to add to the position? >> you are right. it was at 90, i talked about it. but it was part of a diabetes overview that i gave, and i have watched it go up and up and up. and the last couple of days, choppy, but i think novo nordisk, they still have the best anti-diabetes medicine. susan in new jersey.
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>> caller: jim, thanks for taking my call. a couple of days ago, i bought omega health care investors for $22 a share. and i did that because their last earnings report looked good, but i'm wondering what you think of the company in terms of its stability, yield and growth, particularly under the new health care law. >> under every one of these, i have to do individual work. that's how i stumbled on hcn which is my preferred one. i don't want to say that health care reit is better than your reit. i have to add to this to the list and this is the third of this week that i have to do homework on. so much better for me to say i can't opine on it, 8%, than to then tell you it's 5% and watch the dividend be cut or something. fiscal cliff fears are overshadowing major stellar results. that's what this moment is about. the upside surprise of amgen, it was a huge surprise party for investors, and yet now well
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below where it was. i say pick some up. i say you buy some amgen tomorrow. coming up, ride the lightning. take a nonstop thrill ride as cramer goes stock after stock, calls taken rapid fire on "the lightning round." by swipe, type or tap, consumers put more payments than ever on credit. looking to cash in on all those cards? cramer sits down with bank card processor heartland systems to see if they can help you rack up rewards. all coming up on "mad money." like a rabbit... but i want to eat meat! [ male announcer ] iams knows dogs love meat. ...but most dry foods add plant protein, like gluten iams never adds gluten.
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it is time. it is time for the lightning round. we'll take the calls, you tell me the stock, i tell you to buy, buy, buy, sell, sell, sell. and when time is up, then we're over. let's start with chang in california. >> caller: hey, big booyah to you. >> thank you for calling, sir. >> caller: i have a question about isis pharmaceutical. crazy past few days. how do you look at it from now? >> down a lot. the type of thing -- look, you
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are buying a spec with isis. you take a look, dynavac technologies. we like the hepatitis vaccine. the government didn't like that. i think that is a curious overreaction. but it's a spec. you have to be careful. let's go to dan in texas. >> caller: chesapeake energy. >> down 16. mostly natural gas in ohio. if you watched the show, aubrey told you it's mostly natural gas in ohio. i have been buying southwest, swn. why have i been buying southwestern energy? it's the pure nat gas play i want. i think natural gas is going higher in 2013. bill in south dakota. bill. >> caller: jim, my stock is american capital agency corp, agnc. this one is going to go down. why? many companies, real estate
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investment trusts are worried about the taxation considerations, and we also have to worry about what the yield curve looks like and what they will do with fannie and freddie, so many -- so so many crosswinds here, i think you should stay the course, but understand it's just another stock right now and it could lower. no longer charmed like it's been. john in new jersey. john. >> caller: professor cramer. >> thank you for the tenure. yes. >> caller: wind stream, win. >> no, they did not execute. came on the show, told you they would execute, didn't execute. ctl, century link is better. i do prefer verizon and at&t. let's go to artie in new jersey. >> caller: hey, jim. how you doing? booyah. >> i'm trying. everyone is so beleaguered at this point. >> caller: we're doing okay over here too. i'd like your take on kmp.
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>> i think kinder morgan works. big rumor that the master limited partnerships will lose tax favored treatment they have. i don't agree. i think kinder morgan should be bought, and that, ladies and gentlemen, is the conclusion of the lightning round! >> the lightning round is sponsored by td ameritrade. new pink lemonade 5-hour energy? 5-hour energy supports the avon foundation for women breast cancer crusade. so i can get the energized feeling i need and support a great cause? i'm sold. pink lemonade 5-hour energy? yeah and a portion of every sale goes to the avon foundation for women breast cancer crusade. i'm sold. new pink lemonade 5-hour energy. get the alert, energized feeling you need and support breast cancer research and access to care.
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we know it's a tough market. that doesn't mean we should stop looking for opportunities. that means finding the stocks that reported stellar results and are being ignored by the market. i'm not saying you shouldn't be worried.
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that would be wrong, glib. you shouldn't let that worry blind you to the fact that some stocks are worth kicking tires on. the idea that when selling dies down, you might be able to pick something up for a song. i want you to consider heartland payment systems, hpy. the fifth largest processor of transactions in the country. they provide primarily small businesses with the technology needed to make transactions work. taking a tiny cut of each one. this one survived the great recession and a devastating breach of their network by hackers in 2009 to come roaring back. the kind of triple play we've been talking about the last couple of days. they delivered an earnings beat, better than expected revenues, and raised its guidance for the full year. business is clearly going very well. question is, can they keep it up if we go over the fiscal cliff? will their business get
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clobbered like so many others? let's find out more about the quarter and where his company is headed in light of the looming cliff. welcome to "mad money." >> thank you, jim. >> first time on the show and a lot of people hear payments processing. they don't know where you are in the food chain. let's start by an explanation of when we're in contact with your company. >> 250,000 merchants across the country use us for processing. and so we're in contact with them on a daily basis, every hour virtually. >> so i buy something. i swipe my card, where is heartland? >> heartland is the company that answers the phone. that machine makes a phone call and we process, authorize that transaction and then we pay the merchant the next day for their money, taking out our small fee. >> now, being the fifth largest, how do you not get crushed by the four guys ahead of you?
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>> well, in 1997, when we merged with heartland bank to form the company, we were number 62, so we've moved from 62 to number 5 in 15 years, and granted, the big guys ahead of us are really big. >> yeah, first data. >> but we are growing, a nice innovative company with our own data centers and our own developers. we're the most vertically integrated company in the whole industry right now. >> the rap on you had been you were the best and then you had the terrible breach. walk us through what happens. we're all afraid of breaches. many of us have been hacked. how your company was able to recover so quickly. it was a remarkable recovery. >> thank you. it was a tough time. we learned in january 2009 that some bad guys from eastern europe had penetrated our payment system, and we learned later that there were 300 other companies that they had breached, and so what we did is
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-- and i think this was unique in the industry, that we were up front about it. >> you had a tylenol moment there. no one else wanted to admit that they had this happen. >> i talked to a former ceo of johnson & johnson. >> you went to mr. burke? >> the predecessor of mr. burke. he said just be up front, don't try to hide anything. we talked to our employees, notified the card brands, so on, and we developed this encryption model which garbles the transaction at the time the card is swiped, all the way to the end. it encrypts it. if the bad guys get in and steal something, they are stealing garbage, they don't have anything useful. we introduced that to the marketplace.
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>> and that's why you were able to come back. >> that's why we were able to come back in the marketplace. and we went to our competitors, and said to our competitors, let's work together, share information about the bad guys and that's the payment processors sharing council. a very robust organization, we're very proud of that. >> terrific. a great question asked of you in your conference call, how about square, how about paypal, groupon. aren't those guys coming on? you are a very candid guy. your response to these new payment programs? >> we love it, jim. there are nine million sort of core merchants in the country. now with these new innovations, now there will be 25 million is what folks are saying. the market is expanding in a huge way. and these micromerchants need to be serviced in a different way. square has come out, they've done some innovative things, but the things are, they aren't great technology changes.
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they changed the model with flat-rate pricing. pretty expensive for most merchants, but easy and simple to understand, and there is this ability for the merchant to go on their phone and set up their system. >> why don't you show me what you've got? >> this is called mobile. buy with our mobile device. it allows a merchant to take a transaction at a trade show, outside at a tiki bar, a restaurant where they don't have a hard phone line, and line busting, if there is a long line, they can go take payments of people waiting in line. this is very similar to what square is doing. >> home depot does that. you got this for your provider. >> all of these merchants in jersey -- we're based in princeton, new jersey, we were able to get this mobile device, and they were able to use their cell phones and take payments. >> that's terrific.
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that's your invention? >> it's our invention, competitive with square. >> i think you are doing a lot of good things. fiscal cliff made it so we're blinded. >> well, the fiscal cliff has two sort of impacts with us. a lot of owners are really thinking hard about selling out before the fiscal cliff, so there's been a lot of m&a activity this year and a lot more coming that will be done by december 31st because of that cliff. and then, you know, if it puts us into a slowdown, it's always better to have a robust economy. we have been through slowdowns and tough times. we'll do it again. >> you have a nifty little company versus the other guys, but a robust, strong company versus what i'm seeing around town. thank you to robert carr, chairman and ceo of heartland payment systems. memo to all executives who have something bad happen, take his approach. it gets you right back in the game. stay with cramer. at cepacol we've heard people are going to extremes to relieve their sore throats.
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morning starts in high spirits, but there's a growing pain in his lower back. as lines grow longer, his pain continues to linger. but after a long day of helping others, he gets some helpful advice. just two aleve have the strength to keep back pain away all day. today, jason chose aleve. just two pills for all day pain relief. try aleve d for strong, all day long sinus and headache relief. house to reflect the sun's rays back into space to try to reduce climate change. but there are easier ways to go green. like turning off the lights when you leave a room. you could save the tin foil for leftovers the more you know.
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for a brief moment, we almost climbed into the black today. if you missed our six out of seven down days now. let's pretend we aren't beleaguered, angry and frustrated beyond belief. for the sake of argument only, let me be constructive and why you shouldn't sell everything tomorrow. we're very oversold and people are extremely negative. all accept where we're going down. people get this negative tend to get a bounce, even if it takes you to a better place to sell.
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second, many stocks will be impacted when we go over the fiscal cliff. when, no longer if. unless politics rise above, we're going over it. other stocks with bases here that sell soft goods will do well and they need to be bought into weakness, because commodity prices are coming down. everything in the end gets discounted. we can adjust to anything and negatives won't mean much, but a new positive will send us soaring. the new taxes and spending cuts will not be the end of the world for the big secular growth stories and the desire for a bargain. fifth, plenty of companies have the power to raise dividends to where tax returns are far superior to bonds. am i being pollyanna? to be solely destructive misses an important move in the market. we don't know where that move might begin from. we also know that every single time in every single downturn no matter how big or small we have stocks that bottom. and depending on the
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circumstances, industrials bottom first, the shock that bought them down is one time only. sometimes soft goods begin the bounce, because the approximate cause of the decline is done turn technology. and fixed income alternatives, were givens people. no case could you wait until the big bad event occurred. things bottom before that. no case did you not initially suffer losses if you stayed the course. in every case, when blew out everything you did poorly, especially when you look long term, if you bought the ten most actively traded major capitalizations the day before the 1987 crash, where we lost 508 points, it was dumbest day in history to buy stocks, you were up nicely in a year. being constructive is being rigorous. trying to time the cliff is something that's practically hopeless. unless you see the leaders together in a room at a camp
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david style highway, they aren't feeling pressure to do a deal. so many of the constituents don't pay income tax. they don't make enough money. the pain may not be visible for the majority of voters at this moment. it could change if politicians come together out of good which is unlikely, or out of panic, because the stock market has fallen so dramatically and it's the latter that makes being constructive just so very difficult in these uncertain times. stay with cramer. [ female announcer ] research suggests cell health plays a key role
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okay, look. this is all about rising above. i mean, someone stopped me today and said, jim, why does my apple keep going down? i could have given him the fact that it has had two bad quarters, maybe the iphone 5 didn't do as well. that wasn't actually true, because the quarter did well. i looked at him and said, cheap this is why apple is going down. you can say the same for 499

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